Graduates to the TSX

These stocks have just moved from the junior exchange to the main board.

May 31, 2012
Jacqueline Nelson

These 17 I-500 companies made the leap from the TSX Venture Exchange to the main board since last year’s list, typically by growing their market capitalization or asset base. The move immediately gives them access to institutional capital, as well as higher liquidity. By joining the TSX, they also become must-buys for some index funds.

While these businesses are growing quickly, they tend to be junior mining and resource plays, which are about as risky as equities get. That might explain why only one of our seven grads from last year yielded a positive return. When considering stocks in the mining sector, investors should be cautious of the rising capital costs for new projects. Meanwhile, drooping prices and shipping problems are challenging the oilsands. Trimel, the lone pharma firm on the list, is worth watching if only because its largest shareholder is Eugene Melnyk.

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Canadian Business prides itself in delivering the best investment information to our readers every year in the form of our Investor 500. This year the I-500 is available as an e-book for $3.99. In addition to our investment screens, stories and data-jammed tables, we are rating every single stock in the I-500 universe. Plus, we have chosen 20 stocks based on exclusive criteria that are rated tops in both momentum and value. We hope you find this year’s Investor 500 both interesting and profitable.

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